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Retailers Lost Significant Holiday Sales Due to Limited Merchandise and Associate Support


Amidst pullback in consumer spending, Motorola survey finds nearly one in four holiday shoppers abandoned planned purchases

HOLTSVILLE, N.Y. – While several retailers applied creative marketing approaches to ring holiday sales during today’s challenging economic times, a recent Motorola, Inc. (NYSE: MOT) study found that shoppers left an average of $95 unspent when items they wanted were not available due to stores’ limited merchandise, out of stock items or limited associate support, amounting to an estimated multi-billion dollar loss in retail sales.

According to Motorola’s annual survey of holiday shoppers across the U.S., Canada and the U.K., 23 percent of shoppers reported that they were unable to purchase everything they needed or wanted in stores this holiday season. Fifty percent of these shoppers could not find the product they were looking for or needed better information, while an additional 34 percent stated that their selected products were out of stock. Once these holiday shoppers left a particular retailer, nearly six in 10 did not revisit that same location after a dissatisfying experience.

“With approximately 80 percent of surveyed shoppers planning to spend less or the same as in 2007 for holiday-related purchases, retailers lost precious sales due to limited or misplaced merchandise and smaller associate staffs who could not tend to every customer,” said Frank Riso, Motorola senior director of retail solutions for the Enterprise Mobility business. “Retailers can reclaim those lost dollars simply by shortening lines and keeping better track of inventory with technology solutions that place real-time information in the hands of associates, and help customers find what they need, when they need it and to check out quickly.”

Enterprise Mobility for Retailers
Motorola’s Enterprise Mobility business connects people to information when and where they need it – helping to transform businesses and improve the customer shopping experience. Motorola provides an unrivaled technology platform and application partner network, enabling seamless enterprise mobility inside and outside the four walls of a retail environment from the loading dock to the warehouse to the store floor. The company’s end-to-end solution portfolio offers retailers a comprehensive infrastructure comprised of wireless networks, mobile devices, self-service kiosks and voice solutions, granting customers the ability to pick and choose the technologies that best fit their retail environment.

Retailers worldwide continue to turn to Motorola to improve associate productivity, maximize supply chain efficiency and enhance the customer shopping experience. By leveraging Motorola’s enterprise mobility solutions, retailers can offer self-service shopping assistance, item-level product tracking for greater inventory visibility and quicker checkout times. More importantly, the technology helps retailers increase associate productivity and streamline sales processes, improving a store’s ability to ring more sales during the holiday season.

About the Survey

Motorola conducted an independent research study to measure retail shoppers’ satisfaction during the 2008 holiday shopping season. More than 2,300 U.S., Canadian and U.K. holiday shoppers completed the survey via the e-Rewards global online market research panel, one of the largest global panels for market research, with more than 4.2 million consumers and businesses participating. Women over the age of 18 comprised 56 percent of the sample and men over the age of 18 comprised 44 percent of the sample. The survey was designed to provide a measurement for shopper satisfaction with the holiday shopping experience among various retail segments. Key metrics used to gauge market satisfaction include appearance (neatness) of the displays, ease of finding correct prices, merchandise availability, level of store associate assistance and check-out duration.

About Motorola

Motorola is known around the world for innovation in communications. The company develops technologies, products and services that make mobile experiences possible. Our portfolio includes communications infrastructure, enterprise mobility solutions, digital set-tops, cable modems, mobile devices and Bluetooth accessories. Motorola is committed to delivering next generation communication solutions to people, businesses and governments. A Fortune 100 company with global presence and impact, Motorola had sales of US $36.6 billion in 2007. For more information about our company, our people and our innovations, please visit


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